Throughout fiscal 2023, we focused on improving the Company’s financial resilience while making important investments in safety and service delivery, and advancing key longer term strategic initiatives.
For the fiscal year ended August 31, 2023, the Company reported total revenue of $1,778 million, compared to $1,507 million the previous year.
Air traffic levels, as measured in weighted charging units (WCUs) — a measure of the number of billable flights, aircraft size and distance flown in Canadian airspace, which serves as the basis for movement-based service charges — have continued to trend below levels seen in the fiscal year ended August 31, 2019. In fiscal 2023, WCUs increased by 18.1% in comparison to fiscal 2022 but remained 7.3% lower than fiscal 2019.
Driven by the continued growth in revenue from customer service charges, the Rate Stabilization Account decreased from a debit balance (due from customers) of $574 million at the end of fiscal 2022 to a debit balance of $342 million at the end of fiscal 2023.
The Company had positive free cash flow of $350 million in fiscal 2023 as compared to $175 million in fiscal 2022. The increase in free cash flow in fiscal 2023 is largely attributable to higher receipts from customer service charges.
Operating expenses for fiscal 2023 were $1,493 million as compared to $1,416 million in fiscal 2022. The increase is largely due to salaries and benefit expenses from increased staffing and wage levels in fiscal 2023.
Net other income and expenses for fiscal 2023 were a net expense of $124 million as compared to a net expense of $183 million in fiscal 2022. During fiscal 2023, the Company recorded a $33 million (U.S. $25 million) non-cash reduction to the fair value of its investment in preferred interests of Aireon LLC as compared to a non-cash reduction of $82 million (U.S. $63 million) recorded in fiscal 2022. Finance income in fiscal 2023 was $28 million, as compared to $5 million in fiscal 2022, primarily due to higher interest income earned on our cash and short-term investment balances.
The Company had a net income (before net movement in regulatory deferral accounts, including rate stabilization) of $161 million in fiscal 2023 as compared to a net loss of $79 million in fiscal 2022.